The adoption of budget controls in many organizations has been slow paced and in some poorly implemented that leaves loopholes for fraud and misuse of organization resources. Some organization managers have failed to understand the direct impact between budget controls and financial performance, hence failing in giving budget controls the seriousness it deserves while in other organizations the budget controls are seen as a responsibility of the finance and accounting department and budget controls did not cut across the organization functions. The study examined the effect of budget controls on financial performance of SACCOs in Mombasa County. The theoretical review of the study comprised of four key theories i.e Accounting Theory in Budgeting Control, Theory of budgeting, Control theory and Stewardship theory. The study methodology comprised of a descriptive research design, a target population of 40 managers from SACCOs licensed and operating in Mombasa County. Data was collected using primary instruments i.e questionnaires and secondary instruments i.e financial statements. Data instruments were tested for reliability, validity and diagnostic tests. Data obtained was analysed using descriptive and inferential techniques aided by SPSS. Research concluded that budget controls have a positive and significant influence on targeted SACCOs. Specifically, it was concluded that, Budget monitoring, Budget planning and Budget review had a positive significant influence while insignificant effect was reported for Participative budgeting. The conclusion arrived led to the recommendations that SACCO managers ensure full adoption of budget control systems to ensure that they minimize on resource wastages. To ensure SACCO managers fully realize the benefit of Budget Controls, the study recommended for full involvement of all stakeholders in the budget making and where necessary training provided to stakeholders with less understanding of the budgeting process. There is also need for continuous monitoring of expenses to ensure that, all resources are used for intended purposes. Finally, the study recommended for ensuring the budgeting making process is comprehensive and all needs of the organization are adequately considered to get rid of reallocation of resources that encourage mismanagement of resources.

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